Toyota Reportedly Working On New SUV For India By 2026, Likely To Rival Mahindra XUV700

Report suggests that the Japanese carmaker is looking to offer something between the Hyryder compact SUV and the Hycross MPV in India

• Latest report reveals Toyota’s growth plans in India.

• It states that the carmaker is looking to set up a third manufacturing facility.

• New mid-size SUV in the works, codenamed 340D.

• Toyota is also considering a luxurious SUV above Fortuner and below Land Cruiser for India.

The Toyota lineup in India is highlighted by a couple of premium models and still does not have competitors in all key segments, even in the SUV body type. A recent report from Reuters shares that the Japanese carmaker is working on a new SUV for India to fill the gap between the Toyota Urban Cruiser Hyryder and Toyota Innova Hycross.

What do we know so far?

The Toyota sources in the Reuters report have chosen to remain anonymous, but they did reveal that this new SUV is currently being developed under the codename 340D. Given the Hyryder competes in the compact SUV space, it leads us to believe that this new SUV will be aimed at India’s mid-size SUV segment to take on the likes of the Mahindra XUV700, Tata Harrier and MG Hector. These kinds of SUVs are usually priced between Rs 15 lakh and Rs 25 lakh (ex-showroom).

The report further states that the new SUV is due to launch in 2026 and could likely be exported to other right-hand-drive markets from India with a production target of 60,000 units a year. It will likely be manufactured at the third (new) manufacturing facility in the country. There has been no comment on these plans from any Toyota India representative.

Why bring another SUV now?

For a long period, Toyota stuck to the larger body segments with the popularity of the Innova MPV and Fortuner full-size SUV. However, it started entering the highly competitive compact model segments with shared models from Maruti Suzuki. The most recent success from this partnership is the Urban Cruiser Hyryder which is also sold as the Maruti Grand Vitara, with both compact SUVs offering the unique choice of AWD and strong hybrid variants.

As such, Toyota is likely witnessing a lot of potential in the Indian SUV market, especially with strong hybrid powertrains even though the government is getting strict on diesel engines.

Why a mid-size SUV?

While Maruti is still a strong player in the subcompact SUV space with the Brezza, the segment is very competitive in terms of pricing and features with the likes of the 2023 Tata Nexon and Hyundai Venue offering a long list of premium technologies. It may not be ideal for Toyota to bring back the Urban Cruiser. Perhaps, it would be best for Toyota to use its expertise with larger SUVs and look at the mid-size SUV space dominated by the Mahindra XUV700 and Tata Harrier. 

Any other SUVs coming?

The Reuters report also hinted that Toyota is looking at the potential for a miniature version of the Land Cruiser luxury SUV in India to be positioned above the Toyota Fortuner. If the brand does go ahead with it, it would likely be a locally assembled offering to be priced below the luxury segment offerings.

Source

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